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China’s economy is experiencing an uneven recovery; industrial production increases, but retail sales decrease.
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Factory activity exceeded expectations, but consumers are holding back, affecting retail sales growth.
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The housing crisis is worsening, with new home prices falling at the fastest rate in more than nine years.
On Friday, China released data showing an uneven economic recovery that is deterring consumers from spending.
Factory activity slowed, with industrial production rising 6.7% in April compared to the previous year, exceeding the 5.5% growth expected by analysts consulted by Reuters.
The employment scenario has improved. The unemployment rate fell from 5.2% in March to 5% in April.
However, retail sales rose 2.3% from a year earlier, slowing from the 3.1% increase in March and below the 3.8% forecast by economists polled by Reuters – an indication that consumers are holding back.
Growth in investment in fixed assets from January to April was also below expectations, rising 4.2% instead of the 4.6% expected by analysts.
China’s epic housing crisis has gotten worse
Although there are some positive signs in China’s economy, the country’s real estate market is still struggling.
Real estate investment fell 9.8% in the first four months of the year compared to the previous year. This is worse than the 9.5% drop recorded in the first three months of the year.
New house prices in April also fell at the fastest pace in more than nine years, according to Reuters calculations based on official data.
Prices fell 0.6% month-on-month in April, deeper than the 0.3% drop in March, the fastest pace since November 2014, according to Reuters calculations based on National Bureau data. of Statistics, or DNE, released on Thursday.
The decline comes despite Beijing’s efforts to support the real estate sector, which accounted for around a quarter of China’s GDP.
China’s economy is now in a painful transition from its dependence on low-cost production and ownership to “new three” electric vehicle, solar cell and lithium battery industries.
Beijing is also stepping up support measures, including the sale of 1 trillion Chinese yuan, or $138 billion, special ultra-long sovereign bonds to finance infrastructure spending.
It is also considering a plan for local governments to buy millions of unsold homes, Bloomberg reported on Wednesday, citing people familiar with the matter.
This is a developing story. Please check back for updates.
Read the original article at Business Insider
